Third Quarter, 1997
The local real estate market continues to be very dynamic, with the number of Buyers far exceeding the number of properties offered for sale. As a result, the market is a strong Sellers Market, and should remain so into the near future.
Third quarter Multiple Listing Service (MLS) statistics show total residential listings down 5.6% compared to 1996. By contrast, the total number of residential sales are up 14.9%! The median sales price is up 10% and the average sales price is up almost 14%. With the local, state, and national economies doing extremely well, real estate is booming.
To recap the highlights of my last letter, the Taxpayer Relief Act of 1997 has created some significant tax advantages for the transfer of real property: married taxpayers can exclude up to $500,000 of gain on the sale of their principal residence; and, the top capital gain rate has been lowered to 20%. (Check with your tax advisor for specific information). As more owners become aware of these new tax laws we should see more property being offered for sale. In the meantime, expect prices to continue to rise as demand for houses far exceeds supply.